Sonic Automotive (NYSE:SAH) Shares Down 4% - Time to Sell?

Key Points

• Sonic Automotive shares fell 4% to approximately $69.81, trading well below the 50-day moving average of $85.94.
• Analyst sentiment is mixed: the stock has a consensus “Hold” rating and a $97.33 average price target, with recent targets ranging from $72 to $139.
• The company exceeded quarterly earnings and revenue expectations, while maintaining a 2.4% dividend yield with a quarterly payout of $0.41 per share.

Sonic Automotive, Inc. (NYSE:SAH - Get Free Report)'s share price traded down 4% during mid-day trading on Thursday . The company traded as low as $70.07 and last traded at $69.81. Approximately 78,804 shares changed hands during trading, a decline of 71% from the average session volume of 275,168 shares. The stock had previously closed at $72.69.

Analysts Set New Price Targets

SAH has been the topic of several research reports. Barclays decreased their price target on shares of Sonic Automotive from $92.00 to $87.00 and set an "equal weight" rating on the stock in a research note on Wednesday, August 19th. Weiss Ratings upgraded Sonic Automotive from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, August 6th. Needham & Company LLC upped their price target on Sonic Automotive from $90.00 to $139.00 and gave the company a "buy" rating in a research report on Friday, July 31st. JPMorgan Chase & Co. cut their price target on Sonic Automotive from $76.00 to $72.00 and set an "underweight" rating for the company in a report on Tuesday, August 4th. Finally, Bank of America boosted their price objective on Sonic Automotive from $91.00 to $108.00 and gave the stock a "buy" rating in a research note on Thursday, July 9th. Six research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Sonic Automotive currently has a consensus rating of "Hold" and a consensus target price of $97.33.

Sonic Automotive Stock Down 6.8%

The firm has a 50-day moving average of $85.94 and a two-hundred day moving average of $78.05. The company has a quick ratio of 0.25, a current ratio of 1.01 and a debt-to-equity ratio of 1.88. The company has a market capitalization of $2.14 billion, a PE ratio of 10.87, a price-to-earnings-growth ratio of 1.20 and a beta of 0.86.

Sonic Automotive (NYSE:SAH - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported $1.82 EPS for the quarter, beating the consensus estimate of $1.75 by $0.07. The business had revenue of $3.93 billion for the quarter, compared to analyst estimates of $3.78 billion. Sonic Automotive had a return on equity of 20.75% and a net margin of 1.37%.The company's quarterly revenue was up 7.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.19 EPS. Equities research analysts predict that Sonic Automotive, Inc. will post 6.92 earnings per share for the current fiscal year.

Sonic Automotive Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Tuesday, September 15th will be given a dividend of $0.41 per share. This represents a $1.64 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Tuesday, September 15th. Sonic Automotive's dividend payout ratio (DPR) is currently 26.16%.

Hedge Funds Weigh In On Sonic Automotive

Several institutional investors have recently bought and sold shares of SAH. State of Wyoming acquired a new position in shares of Sonic Automotive in the first quarter valued at approximately $79,000. Ameritas Advisory Services LLC purchased a new position in Sonic Automotive in the 2nd quarter valued at approximately $88,000. Hennion & Walsh Asset Management Inc. acquired a new position in shares of Sonic Automotive in the second quarter worth $208,000. Kingdom Financial Group LLC. purchased a new stake in shares of Sonic Automotive during the fourth quarter worth $264,000. Finally, Fifth Third Bancorp raised its stake in shares of Sonic Automotive by 2,981.1% in the first quarter. Fifth Third Bancorp now owns 4,067 shares of the company's stock valued at $279,000 after acquiring an additional 3,935 shares in the last quarter. 46.92% of the stock is owned by institutional investors and hedge funds.

About Sonic Automotive

Sonic Automotive, Inc is an automotive retailer headquartered in Charlotte, North Carolina. The company operates franchised dealerships that sell new and pre-owned vehicles from a range of automobile manufacturers, along with replacement parts, vehicle maintenance and repair services, financing, insurance products and other related offerings.

Sonic also operates EchoPark Automotive, a retail platform focused primarily on high-quality pre-owned vehicles. Through its dealership and EchoPark operations, the company provides vehicle purchasing, trade-in, financing and service options to consumers.

Founded in 1997, Sonic Automotive serves customers through locations across the United States.

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